10/05/06 Wheat futures ignited by export news

Marketline October 5, 2006 News of U.S. wheat purchases by Egypt and another by Iraq sent wheat futures nearly limit up in Chicago Wednesday with double digit gains at all exchanges. Once futures took out recent highs shorts began to cover and funds went on a buying spree. Chicago wheat hit a 10-year high. Iraq purchased another 100-thousand tons of U.S. hard red winter wheat. That's in addition to the 200-thousand announced Tuesday. And Egypt bought 115-thousand tons of U.S. soft red winter wheat. Traders have been focused on tightening world wheat stocks and expecting more export business for the U.S. On Wednesday December Chicago wheat was up 25 ½ cents at 4-65. July new crop in Chicago is at 4-77. December corn up 10 ½ at 2-74 ¼. Portland cash soft white wheat six to ten cents higher at mostly 4-64. Club wheat 5-04. HRW 11.5 percent protein 12 cents higher at 5-62. Dark northern spring 14% protein sixteen to 18 cents higher at 5-68. Cattle futures were mixed Wednesday in a slow trade as the market awaits cash developments. Feeders were pressured by higher corn. Nearby live contracts got pressure from longs rolling into deferred months. USDA announced Mexico will resume trade in U.S. dairy heifers under 24 months of age. In the futures, Dec live cattle down 17 cents at 89-27. Nov feeders down 40 at 110-87. Nov Class III milk up a nickel at 12-45. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.